Foreword
The Department of Defense (DoD) relies heavily on the private sector to carry out aspects of the Departments mission. Because of the critical reliance on contractor support and the large expenditures involved, contract surveillance is vital to ensure that contractors are providing quality services and supplies in a timely manner; to mitigate contractor performance problems; and to ensure the Federal Government (Government) receives best value for the Warfighter.
Contract quality performance is the responsibility of both the contractor and the Government. The contractor is responsible for carrying out its obligations under the contract in terms of quality, timeliness and cost. The Government is responsible for ensuring that services and supplies acquired conform to the quality and performance requirements of the contract.
Contract quality surveillance is an essential activity. In most cases, contract quality surveillance is the responsibility of the requiring organization the organization most familiar with the technical complexities and nuances of the requirement with assistance from the contracting office. The requiring organization prescribes contract quality requirements that the contracting office includes in contracts. Often, members of the requiring organization are designated specific authority by the Contracting Officer to conduct contract surveillance as a Contracting Officers Representative (COR) in order to verify that the contractor is fulfilling contract requirements and to document performance for the contract record. These CORs function as the eyes and ears of the Contracting Officer and are a liaison between the Government and contractor when executing surveillance responsibilities.
DoD[footnoteRef:1] policy requires that the requiring activity/COR management participate in nominating CORs and assess their performance of COR responsibilities. COR management affirms that the COR will be afforded necessary resources (time, equipment, opportunity) to perform designated COR responsibilities. [1: Deputy Secretary of Defense Memorandum, Monitoring Contract Performance in Contracts for Services, 22 August 2008, http://www.acq.osd.mil/dpap/policy/policyvault/2008-0468-DPAP.pdf.]
This COR handbook addresses key aspects of contract quality surveillance and the roles and responsibilities of the Contracting Officer, the COR and the requiring activity/COR management. It is a comprehensive resource for the Contracting Officer, COR management, and the first-time, as well as the experienced, COR. A primary principle throughout this handbook is the importance of open communication between, and due diligence of, the Contracting Officer, the COR, COR management, the requiring activity, and the contractor in contract surveillance. This handbook is intended to supplement, not replace, training and performance of surveillance. When in doubt, CORs should refer to the contract, the COR letter of appointment/designation, and the Contracting Officer.
We envision this DoD COR Handbook to be a living document accessible at (http://www.acq.osd.mil/dpap/). Please provide your comments and recommendations to improve the Handbook, as well as lessons learned on contract quality surveillance, to Peggy Ayanian at [email protected]
Richard Ginman
Director
Defense Procurement and Acquisition Policy
Contents
Introduction
Chapter 1: The Importance of Contract Surveillance
Related Duties
Chapter 1. Key Points
Chapter 2: Roles and Responsibilities for Contract Surveillance
Nomination, Designation, and Appointment of the COR
Performance of COR Functions
Termination of COR Appointment
DoD COR Tracking (CORT) Tool
Chapter 2. Key Points
Chapter 3: Ethics and Integrity
Review of Standards
Working with Contractor Employees
Transportation and Travel
Awards and Certificates
Procurement Integrity
Compensation after Leaving Federal Employment
Penalties
Personal Conflicts of Interest
Organizational and Consultant Conflicts of Interest
Organizational Conflicts of Interest
Bribery
Gratuities
Gifts
Anti-Kickback Act
Exceptions to Gift Prohibition
Reporting Gifts
Protecting the Integrity of the Acquisition Process
Chapter 3. Key Points
Chapter 4: The Acquisition Team and Process
The Acquisition Team
The Acquisition Process
Chapter 4. Key Points
Chapter 5: COR Responsibilities
Post-Award Duties
Understanding the Contract
Keeping Files Current and Complete
Correspondence and Responses
Correspondence with the Contractor
Notifications to the Contracting Officer
Monitoring Contract Performance
Inspect and Accept/Reject Deliverables
Proprietary and Classified Information
Managing Problems
Handling Unsatisfactory Performance
Tracking Modifications
Conclude Appointment/Designation Appropriately
Technical Expertise
Limitations
Protecting Sensitive or Government Information
Related Duties
Pre-Award Duties
Chapter 5. Key Points
Chapter 6: Contract Structure
Categories and Types of Contracts
Categories of Contracts
Types of Contracts
Fixed-Price Contracts
Cost-Reimbursement Contracts
Contracts for Commercial Items
Contract Structure
UCF Part I The Schedule
UCF Part II Contract Clauses
UCF Part III List of Documents, Exhibits, and Other Attachments
UCF Part IV Representations and Instructions
Order of Precedence
Contract Structure Solicitations/Contracts for Commercial Items
Structure Task or Delivery Orders
Contract Language Rules
Contract Numbers (For Example: N00062-90-C-0001)
Chapter 6. Key Points
Chapter 7: Contract Administration
Post-Award Orientation (Kick-Off)
Conducting the Post-Award Orientation
Topics for Discussion at the Post-Award Meeting
Contractor/System Compliance
Contractor Accountability through SPOT
Performance Monitoring
Contract Modifications
Reasons for Contract Modifications
Types of Contract Modifications
Contract Options
Contract Changes
Constructive Changes
Unauthorized Commitments
Ratification of Unauthorized Commitments
Ratification Process
Technical Evaluation
Cost/Price Evaluation
Completion/Payment
Acceptance
Documenting Acceptance
Wide Area Workflow
Nonconformance
Remedies for Nonconformance
Acceptance of Nonconforming Supplies or Services
Invoice and Payment
Contents of a Valid Invoice
Voucher and Invoice Review
Overtime
Interest Penalties
Warranties
Implied Warranties
Express Warranties
Past Performance
Contract Closeout
DOs and DONTs: Contract Administration
Chapter 7. Key Points
Chapter 8: Monitoring the Contractor
Contractor Progress Reports
Assessing Performance
Acceptable Inspection Methods
Random or Stratified Sampling
100 Percent Inspection
Periodic Inspection or Planned Sampling
User Feedback
Documenting Performance
Remedies for Poor Contract Performance
DOs and DONTs: Remedies
Delays
Identifying and Verifying a Delay
Notifying the Contracting Officer of the Technical Impact of a Delay
Assisting the Contracting Officer with Evaluating the Contractors Response
Fraud
Combating Trafficking in Persons
Government Property
Property Responsibilities
Reporting, Reutilization, and Disposition of Government Property
Contract Termination
Termination for Convenience of the Government
Termination for Cause/Default
Disputes
COR Working File
DOs and DONTs: Contract Monitoring
Chapter 8. Key Points
Chapter 9: Monitoring Service Contracts
Personal and Non personal Services
Contractor Inspection Clauses for Service Contracts
Performance Work Statements for Service Contracts
Quality Assurance Surveillance Plans for Service Contracts
QASP Composition and Method
Contract Surveillance Checklist
Incident Reporting
Contract Work Hours and Safety Standards Act
Chapter 9. Key Points
Chapter 10: Monitoring Construction Contracts
Performance and Payment Bonds
Contractor Inspection Clauses
COR Labor Compliance Checking
Correction of Deficiencies
Liquidated Damages
Differing Site Conditions
Contractual Rights of the Government
Progress Payments
Suspension of Work
Chapter 10. Key Points
Chapter 11: Foreign Acquisition and International Relationships
Domestic Trade
International Trade
U.S. Domestic Preference Legislation
The Buy American Act
-Coverage of the Buy American Act
-Exceptions to the Buy American Act
The Berry Amendment
Trade Agreements
International Relationships
Business Culture
Additional Guidance
Chapter 11. Key Points
Appendices
Appendix A. Forms
Appendix B. Contract Planning and Source Selection
Appendix C. COR Qualifications and Training
Appendix D. Acronyms and Terms
Appendix E.
